If you are looking for a genuine & bona fide Christmas horror classic, in the vein of "Black Christmas" or "Silent Night Deadly Night", then... this certainly isn't the one! But I guess you already derived that from the title, the horrible cover-art, the score here on IMDb, and the reviews. "Psycho Santa" is amateur fan-boy film making of the worst possible kind. We're talking shaky handheld camerawork, atrocious acting from people who wanted to do the writer/director a favor, a flimsy plot, zero gore or make-up effects, and endless amounts of padding footage.
When a couple drives out to their family on Christmas' eve, the man tells the story of a neighborhood psychopath who escaped from a burning asylum and - dressed as Santa Clause - killed a bunch of people. Those kills are told in flashbacks, and here's what makes "Psycho Santa" the absolute worst movie in history: the flashbacks simply exist of random filler-footage. Two girls in a remote cabin, showering and dancing for almost fifteen minutes. Two burglars breaking into the house of a blind woman and spending an enormous amount of time forcing the lock and wandering in the house. A brother and a sister facing engine trouble in the woods and walking around for another fifteen minutes. Just when the psycho is finally about to appear, the flashbacks end and it's the guy in the car who simply narrates the bloody details. What?!? "Psycho Santa" gives a whole new dimension to the term 'anti-climax'. Anyone who claims this movie is worth seeing is either bribed by the director or related to him. One extra point for the poor girls who agreed to show full-frontal nudity, and probably secretly hoped it would help their careers forward.